A method for the solution of the homogeneous inventory-production optimisation problem

  • 1 Institute of Automatic Control and Information Technology, Faculty of Electrical Engineering and Computer Science, Cracow University of Technology

Abstract

The subject of this paper is the inventory-production problem, which is a one of the optimization problems in a decision area in which inventory volume and production volume are considered together. There are many approaches to this problem but for the first time, this problem is modelled by means of a capacitated graph network and a solution to the problem is proposed on the basis of this model which consists of finding the maximum flow with the minimum sum of production and inventory cost. In this article, only a solution for one kind of product for the deterministic inventory-production optimisation problem is presented and for this one kind of product, a maximum flow with a minimum cost for each considered demand period is calculated. The maximum flow with minimum cost is a solution to the homogenous inventory-production optimisation problem. The solution to the one kind of product for the inventory-production problem consist of maximum flow with minimum cost for a total demand from all periods, which has been taken into consideration.

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